Question

Which of the following is an advantage of pull systems?

1) They are efficient even when schedules are missed.
2) They minimize inventory and production costs.
3) They forecast changes in customer demand.
4) They reduce transportation costs.

Answer 1

An advantage of pull systems in supply chain management is that they minimize inventory and production costs.

Step-by-step explanation:

An advantage of pull systems in supply chain management is that they minimize inventory and production costs. Pull systems focus on producing goods based on customer demand rather than pushing products through the supply chain based on forecasted demand.

By using pull systems, companies can avoid overproduction and reduce the need for excessive inventory. This helps to minimize carrying costs and waste. Additionally, pull systems allow for more efficient production scheduling and resource allocation, resulting in cost savings.

Therefore, option 2) They minimize inventory and production costs is the correct answer.